Shares of Zoom Video Communications Inc. (ZM) gained 0.9% in premarket trading, after Mizuho analyst Siti Panigrahi's bullish call, ahead of the videoconference software company's analyst day next week, which Panigrahi said is likely to be a "key catalyst." He started coverage of Zoom Video with a buy rating and stock price target of $550, which is 15% above Thursday's closing price of $478.55. "Zoom's meteoric rise during COVID-19 has been driven by uptake of its best-of-breed video conferencing tool, which became a global sensation almost overnight," Panigrahi wrote in a note to clients. "We believe Zoom can continue to deliver outsized revenue growth due to its position as a market leader, its global recognition, cross-sell opportunities, and its position in a growing and underpenetrated long-tail market." The stock has skyrocketed sevenfold (up 603%) year to date through Thursday, to Zoom Video's market capitalization to $136.1 billion, while the S&P 500 has edged up 6.7%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 09, 2020 07:09 ET (11:09 GMT)
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